The Centre cleared the last roadblock to national carrier Air India Ltd.’s merger with smaller rival Vistara, approving a $360 million ($276 million) investment by Singapore Airlines Ltd. into the new combined carrier.
The approval of FDI would allow Singapore Airlines to invest S$360 million ($276 million) in the newly formed carrier.
The deal between Singapore Airlines and Tata-owned Air India is likely to be completed by the end of this year. With the clearance in place, the merger, which will see Singapore Airlines acquire a 25.1 percent stake in Air India, is expected to be completed by the end of this year.
The government’s FDI approval, along with anti-trust and merger control clearance and approvals, is likely to speed up the Air India-Vistara merger, said Singapore Airlines (SIA) in its regulatory filing on Friday.
“The FDI approval, together with anti-trust and merger control clearances and approvals, as well as other governmental and regulatory approvals received to-date, represent a significant development towards the completion of the proposed merger,” the airline said in the filing to the Singapore Stock Exchange.
Air India-Vistara merger completion date
The two airlines finalized their merger plan in November 2022. Tata Group owns Air India and runs Vistara as a 51:39 joint venture with Singapore Airlines.
“At this juncture, completion of the proposed merger is anticipated to occur by the end of 2024,” the company added. The Air India-Vistara merger will transform into one of the biggest airline groups.
The two parties are mulling over the extension of the long stop date for the completion of the merger. Earlier, it was expected to be October 31, 2024.
Get the latest news updates and stay informed with FELA NEWS!
Source: NEWS18
